University of Northwestern Ohio

Loans

The University of Northwestern is a Title IV eligible school and participates in Federal and Private Education Loans.  The University of Northwestern Ohio has established and follows a Student Loan Code of Conduct as required by HEA Sec 487(a)(25), 487(e), and 34 CFR 601.21.  There are three types of loans available to students and families to assist in covering educational expenses. Loans are borrowed funds and must be repaid. Separate application processes/promissory notes are required for each. A Federal Annual Student Loan Acknowledgement is highly recommended, but not required, for Federal Loans. The below information outlines the differences of each and will provide information on the application steps.

Federal Loan Eligibility Requirements:

A FAFSA application is required and verification must be complete (if selected) for Federal Loan eligibility. A student must be enrolled or accepted for enrollment in an eligible degree or certificate program, and must be enrolled at least half time. Students must meet Satisfactory Academic Progress standards and must not be in default on previously borrowed Federal Loans nor have an overpayment record on previously received Federal loans and grants.  Students can only borrow up to the maximum aggregates, described below.

Terms and Conditions of Loans: https://uscode.house.gov/view.xhtml?req=(title:20%20section:1087e%20edition:prelim)

Federal Direct Student Loans:

There are two types of Federal Direct Student loans: Subsidized and Unsubsidized.  The differences are outlined below and identify the required application steps.

After receiving a Financial Aid Offer, if you wish to use the Federal Direct Student loan eligibility listed on your offer, you will need to complete a Master Promissory Note and Federal Student Loan Entrance Counseling, described under Student Loan Process below. The Annual Student Loan Acknowledgement is highly recommended, but not required, and can be completed each Academic Year.

• Subsidized Direct Student Loans are available to students who demonstrate financial need. The Federal government pays the interest on these loans while the student is enrolled in college.  The amount of subsidized eligibility is dependent on the difference between the cost of attendance (COA) at a school and your Student Aid Index (SAI). While COA varies from school to school, your SAI does not change based on the school you attend. 

• Unsubsidized Direct Student Loans are non-need-based loans. The student is responsible for the interest that accrues starting when the government disburses the loan. However, students may elect not to pay the accrued interest on these loans while they are in school, but in that case, the interest would be capitalized, or added to the principal balance of the loan in repayment.                                                                                                   

Additional information on the Federal Direct Student Loans can be found here.                                                                                                                 

Eligibility and Aggregate amounts are as follows:

Year	Dependent Students (except students whose parents are unable to obtain PLUS Loans)	Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)
First-Year Undergraduate Annual Loan Limit	$5,500—No more than $3,500 of this amount may be in subsidized loans.	$9,500—No more than $3,500 of this amount may be in subsidized loans.
Second-Year Undergraduate Annual Loan Limit	$6,500—No more than $4,500 of this amount may be in subsidized loans.	$10,500—No more than $4,500 of this amount may be in subsidized loans.
Third-Year and Beyond  Undergraduate Annual Loan Limit	$7,500—No more than $5,500 of this amount may be in subsidized loans.	$12,500—No more than $5,500 of this amount may be in subsidized loans.
Graduate or Professional Students Annual Loan Limit	Not Applicable (all graduate and professional students are considered independent)	$20,500 (unsubsidized only)
Subsidized and Unsubsidized Aggregate Loan Limit	$31,000—No more than $23,000 of this amount may be in subsidized loans.	$57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students.

• Loan processing fees which may be deducted by the government are up to 1.057% for Federal Direct Student loans disbursed after October 1, 2020. 
• The fixed interest rate for both Subsidized and Unsubsidized Undergraduate Loans for the 2024/2025 academic year is 6.53%, not to exceed 8.25%.
• The fixed interest rate for Unsubsidized Graduate Student Loans for the 2024/2025 academic year is 8.08%, not to exceed 9.50%. 
• Repayment begins 6 months after graduation or dropping below half time enrollment.

Federal Direct Student Loan Process:

Master Promissory Note:

All students at the University of Northwestern Ohio will have to complete a Master Promissory Note (MPN) for Federal Direct Student loans.   The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s). You may receive more than one loan under an MPN over a period of up to 10 years to pay for your educational costs.  A Master Promissory Note must be competed at www.studentaid.gov.  You will need to provide demographic information and will need to provide two references and contact information.

Entrance Counseling:

Entrance counseling ensures you understand the terms and conditions of your loan and your rights and responsibilities. You'll learn what a loan is, how interest works, your options for repayment, and how to avoid delinquency and default. When Entrance Counseling is complete, a record of completion will be sent to the school you selected.  Entrance Counseling can be completed at www.studentaid.gov.

Annual Student Loan Acknowledgement (ASLA):

Although not required, we recommend you complete an Annual Student Loan Acknowledgment each year you accept a new federal student loan. This process will help you understand your loans and how they affect your financial future.

• If completing the ASLA for your first time accepting a federal student loan, you are acknowledging that you understand your responsibility to repay your loan.
• If you have existing federal student loans, you are acknowledging that you understand how much you owe and how much more you are eligible to borrow.

When the US Department of Education has record of your MPN and the Entrance Counseling has been satisfied, they will be able to send funds to your account on the date the University may request them. The MPN and Entrance Counseling covers all of your Federal Direct Student loans during your attendance at the University of Northwestern Ohio and is valid for a period of up to 10 years if your FAFSA is filed each year.

The Office of Financial Aid will certify the maximum loan amount noted on your Financial Aid Offer unless written notification is provided to us. A Loan Amendment Form is available on your Financial Aid Offer if you wish to reject your student loans or reduce the loan amount you would like to use.

Federal Direct Parent PLUS Loan:

The Federal Direct Parent PLUS Loan is a low interest loan that parents of undergraduate, dependent students may borrow.  Parent borrowers must not have adverse credit, and must be the biological or adoptive parent of the student (step-parents in some circumstances can apply).

• Loan processing fees which may be deducted by the government are up to 4.228% for Federal Direct Parent Plus loans disbursed after October 1, 2020.
• The fixed interest rate for Federal PLUS Loans for the 2024/2025 academic year is 9.08%, not to exceed 10.5%.
• A family can fund the entire cost of their child's education per year from this program minus other financial aid.

If a parent wishes to use a Federal Direct Parent PLUS Loan, they will have to both sign a Master Promissory Note (MPN) and request an amount on the Federal Direct Loan Web site by starting the PLUS application process. An Annual Student Loan Acknowledgement should also be completed by the parent borrower before a PLUS application can be processed. More information on PLUS loans can be found here.

Federal PLUS Loan Process:

PLUS Application:

Parent borrowers can complete a PLUS Loan Application at www.studentaid.gov.  

Master Promissory Note:

All parent borrowers at the University of Northwestern Ohio will have to complete a Master Promissory Note (MPN) for Federal PLUS loans.   The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s). Parent Borrowers may receive more than one loan under an MPN over a period of up to 10 years to pay for your educational costs.  A Master Promissory Note must be competed at www.studentaid.gov.  Parent borrowers will need to provide demographic information and will need to provide two references and contact information.

Annual Student Loan Acknowledgement (ASLA):

Although not required, we recommend parent borrowers complete an Annual Student Loan Acknowledgment each year a new PLUS loan is borrowed. This process will help you understand your loans and how they affect your financial future.

• If completing the ASLA for your first time accepting a federal loan, you are acknowledging that you understand your responsibility to repay your loan.
• If you have existing federal loans, you are acknowledging that you understand how much you owe and how much more you are eligible to borrow.

When the US Department of Education has the parent's PLUS Application and MPN, they will be able to send funds to the student's account on the date the University may request them. The MPN covers all of the Federal Parent PLUS loans during your student's attendance at the University of Northwestern Ohio. It is valid for a period of up to 10 years if the FAFSA is filed each year; however, the PLUS Application must be completed each Academic Year. In order to complete the MPN, the parent borrower will need to provide addresses and other contact information for two references, as well as some general information.

PLUS Credit Denial 

If an adverse credit history is found, a parent borrower will be denied the PLUS loan; however, funds may still be secured with the following methods:

1. Obtaining an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the parent PLUS Loan if you do not repay it.  The endorser cannot be the child on whose behalf you are borrowing.
2. Documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances relating to your adverse credit history.

If one of the options above is applied, Parent PLUS Loan Counseling will be required.  PLUS Credit Counseling will help students and parents understand the obligations associated with borrowing a PLUS loan and assist them in making careful decisions about taking on student loan debt.  For more information on PLUS Credit Counseling and to complete the process, click here.

If a parent credit decision remains in a denied status, a dependent student can receive additional Unsubsidized Student Loan eligibility under the Independent student loan limits.

Federal Direct Loan Disbursements

Students who are first-time borrowers of the Federal Direct Student Loan are required to have their first-term disbursement no earlier than 30 days after the start of your academic program.

In addition, when any Federal Direct loan period during a student's program of study must be set up to cover only one term of attendance, the Federal government requires that the loan funds are to be disbursed twice during the term. Half of the loan amount will be at the normal disbursement time and the other half of the disbursement will be at the mid-point of the term.

Students are notified of eligibility and disbursement amounts by using their Financial Aid Offer and billing statements. Disbursements are scheduled after the term census date, which for the College of Applied Technologies is the 7^th business day of the term and for the Colleges of Business, Occupational Professions, Health Professions, and Master of Business Administration is the 12^th business day of the term.

Once funds are disbursed, both parent borrowers of PLUS loans and Federal Direct Student Loan borrowers will receive a notification of disbursement.  Parent borrowers will receive a mailed notification and students will receive an email notification directing them to their student portal to view their Loan Disbursement Notice.  These notifications disclose the anticipated and actual disbursement date, provide a right to cancel all or a portion of the Direct Loan or loan disbursement, and the deadline to cancel the loan funds.

Private Education Loans:

Private Education Loans are non-FSA loans made to a borrower to cover educational expenses.  Per 34 CFR 668.14(b)(29)(ii), an institution must, upon the request of the applicant, discuss the availability of Federal, State, and institutional financial aid.  UNOH strongly recommends that you apply for and use Federal Direct Student Loan eligibility and/or other FSA aid prior to a Private Education loan.  FSA funds typically provide more favorable rates and provisions than private lenders.  Please contact our office to inquire as to Federal eligibility.  Please review the UNOH Private Education Loan Lender List Policy for more information. 

For students seeking a private loan to pay the remaining cost after all other financial aid eligibility is provided, a separate application and promissory note will be required by the lender. There are two different types of Private Loans available: A Student Private Loan and a Parent Private Loan. It is the borrower's responsibility to contact a lender and complete their application and promissory note. A family can fund the entire cost of their child's education from this program minus other financial aid.  Applications are required each Academic Year.

At the University of Northwestern Ohio, a student can complete these requirements on-line through lenders presented on ELMSelect or any lender of choice if eligibility requirements are met. These loans generally are based on creditworthiness of the borrower and cosigner and may not be automatically approved. Per the Truth in Lending Act and 15 U.S.C. 1638(e)(1) | 12 CFR 226.47(a), schools must inform students of application or solicitation disclosures.  Each lender provides a disclosure via ElmSelect. In addition, a lender must obtain a signed, completed Private Education Loan Applicant Self-Certification before initiating a private education loan.  Typically, this will be provided by the lender to the borrower; however, a Self-Certification form is available below if needed.

Private Education Loan Applicant Self-Certification

Attention College of Applied Technologies Students:

Each academic year when applying for your initial Private Student Loan, please request the amount needed for the first four sessions of your attendance.

In order to continue receiving Private Student Loan funds please note there is a "Private Loan Review" which will be required during the fourth session. This review allows students to determine if lesser or additional amounts will be needed from the Private Student Loan program for the remaining portion of the academic year. You will receive a letter of notification when it is time to apply for the second Private Student Loan. The application procedure for this second Private Student Loan will be the same as your initial Private Student Loan.

Student Private Loan Application Process

• For students who wish to apply for a Private Student Loan(s) with benefits as noted from lenders presented on ELMSelect, please click here: ELMSelect.
• For students who wish to apply for these funds from other lenders, please contact the lender and follow their application procedure. Please make sure you meet their eligibility requirements before applying, and notify our office when your application is complete.

Parent Private Loan Applications

• Parent Private loans are an option for a parent or other borrower that is not the student to assist in funding a student's education.  Those interested in using a Parent Private Loan can apply using a lender of choice independently. Please be sure the student meets the lender's eligibility criteria and notify our office when your application is complete.